Taxes

The Budget Deficit Increases By Almost 40 Percent

JM Ashby
Written by JM Ashby

The federal budget deficit increased by nearly 40 percent during the first eight months of the year when compared to last year according to the Treasury Department.

Trump and congressional Republicans said their tax cut for corporations and rich would pay for itself, but that obviously hasn't happened and it's not going to happen before the heat death of the universe.

According to Treasury Department data, the federal government is spending more money than its taking in and it's not even close.

From Bloomberg:

The shortfall was 38.8% more than the same period a year ago, the Treasury Department said in its monthly budget review released on Wednesday. So far in the fiscal year that began Oct. 1, a revenue increase of 2.3% hasn’t kept pace with a 9.3% rise in spending. [...]

The deficit is forecast to reach $897 billion this fiscal year, from $779 billion last year, and rise to more than $1 trillion in fiscal 2022, according to the Congressional Budget Office.

According to the Treasury Department, the government also collected nearly $45 billion in duties from Trump's tariffs on imports from China among other nations during the first eight months of the year.

So, even with extra revenue from Trump's tariffs flowing into the Treasury, the federal deficit still climbed by almost 40 percent year-over-year.

There are times when I wonder to what extent Trump's trade war exists just to keep the deficit from climbing to $1 trillion before the 2020 election.

  • muselet

    Didn’t Donald Trump and congressional Rs scream themselves hoarse for eight years about how irresponsible it was for Barack Obama to run unprecedented deficits! and force future generations to pay off the devastating debt! by proposing that government, you know, govern?

    Now, those same clownshoes don’t even know what the words “deficit” and “debt” mean, except that they’re things Ds cause.

    Kevin Brady, who was instrumental in writing the Rs’ tax deform bill, has even argued that it’s “hard to know” whether the tax cuts will pay for themselves [Washington Post via Steve Benen]:

    “We will know in year 8, 9 or 10 what revenues it brought in to the government over time. So it’s way too early to tell,” said Brady at the Peterson Foundation’s annual Fiscal Summit in Washington D.C.

    Perhaps you’ve all noticed, I’ve pretty much lost patience with R hypocrisy on the issue.

    –alopecia

    • Draxiar

      It’s an old and tired game they play isn’t it? It’s one they need to account for by us but also Democratic candidates. Make the Republicans answer for it and don’t let them of the meat hook until they do.